Is the explosive Miami condo market beginning to max out?
The answer is a solid yes, according to multiple informed opinions within a recent article in the Wall Street Journal, one being a former Miami Beach mayor and current development lawyer.
"The condo market has peaked," said Neisen Kasdin, a real-estate development lawyer at Akerman LLP in Miami. "Sales velocity has slowed down considerably."
‘The condo market has peaked. Sales velocity has slowed down considerably.'
Some of the reasons mentioned were the crippling buying power of foreign investors, especially from South America, and stock-market turbulence. Related Group's Carlos Rosso mentioned their condo sales have dropped to about 20 units per week in the South Florida area, down from about 100 per week last year.
Despite the slowdown, we're surely not going to see a repeat situation from 2008 as buyers are putting more money down and developers aren't breaking ground before hitting certain thresholds -- usually at 80-percent sold.
Yet with all the towers under construction, it's safe to say the condo market is becoming oversaturated.